The Federal Government of Nigeria is preparing to release a second bond valued at N729 billion, aimed at paying off verified legacy debts owed to electricity generation companies, known as GenCos. This initiative is designed to enhance liquidity within the nation’s power sector. This upcoming issuance serves as the conclusion of the initial stage of the N4 trillion Presidential Power Sector Debt Reduction Programme, an initiative sanctioned by President Bola Tinubu to resolve persistent financial liabilities in the Nigerian Electricity Supply Industry.
This new bond follows a successful N501 billion Series 1 issuance from January 2026. Combined, these two financial instruments total N1.23 trillion, completing the first phase of the government’s strategy to stabilize the power industry. The Nigerian Bulk Electricity Trading Plc (NBET) stated that this move will reinforce investor trust and improve financial flow throughout the sector.
NBET highlighted that the first series of bonds met all repayment deadlines as of July 14, 2026, proving the administration’s dedication to its fiscal promises. Johnson Akinnawo, the Managing Director and CEO of NBET, noted that this strategy utilizes a transparent, market-focused approach to clear historical debts. By easing liquidity constraints, the government hopes to attract further investment and expand electricity generation capacity across Nigeria. The N4 trillion program, which gained approval in 2025, utilizes the NBET Finance Company Plc as a special vehicle to manage these government-backed debt instruments.
